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Public Statements

House Approves Bill to Cut Red Tape

Press Release

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Date:
Location: Washington, DC

The House today passed the Red Tape Reduction and Small Business Job Creation Act (H.R. 4078) by a vote of 245-172. The bill provides immediate relief to small businesses by freezing the most costly unnecessary regulations by the Obama administration. House Judiciary Committee Chairman Lamar Smith (R-Texas), an original co-sponsor of the bill, praised the House vote.

Chairman Smith: "President Obama has turned America into a regulation nation. A Heritage Foundation study found that in his first three years in office President Obama adopted 106 major rules that impose $46 billion in additional annual regulatory costs on the private sector.

"We need to encourage businesses to expand, not tie them up with red tape. This bill gives small businesses a much-needed break from new regulations that cost the economy $50 million or more, until the unemployment rate stabilizes at six percent.

"Economic growth depends on job creators, not federal regulators. The Red Tape Reduction and Small Business Job Creation Act gives job creators confidence about future regulatory conditions, which will encourage them to make the investments that will jump-start our economy. This bill frees up businesses to spend more, invest more, and produce more in order to create more jobs for American workers."

The Red Tape Reduction and Small Business Job Creation Act puts a moratorium on new regulations that cost the economy $50 million or more, until the unemployment rate stabilizes at six percent. The bill is narrowly tailored only to stop these unnecessary economically significant regulations. It contains reasonable exceptions, such as health and safety, criminal or civil rights laws, trade agreements and national security. The bill also streamlines the environmental review and construction permitting process to establish reasonable deadlines for agencies to complete the reviews and decide permit applications.

Background on Regulation Reduction Bills: Last year, the House of Representatives passed three House Judiciary Committee bills to help reduce the impact of burdensome regulations on small businesses and the economy. The Regulations from the Executive in Need of Scrutiny (REINS) Act (H.R. 10) requires Congress to approve regulations that have an economic impact of $100 million or more before they can be imposed on the American people. The Regulatory Flexibility Improvements Act (H.R. 527) requires federal agencies to identify and reduce the costs new regulations would impose on small businesses. The Regulatory Accountability Act (H.R. 3010) places permanent restrictions on regulatory agencies and restores accountability by requiring openness and transparency in the regulatory process.

Chairman Smith sponsored both the Regulatory Flexibility Improvements Act and the Regulatory Accountability Act. He is a primary cosponsor of the REINS Act.


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